Lecture # 14
Eminent Domain and Just Compensation
Eminent Domain: the inherent power of a sovereign government to take
appropriate land for government use
Qualification on eminent domain comes from the Fifth Amendment:
“…nor shall private property be taken for public use,
without just compensation.”
Interpretation of this clause:
- Any taking must be for public use to be valid
- The owner of taken property must be compensated with “just
compensation”
What is a taking?
- Physical taking of property, no matter how small an area
- Regulation depriving the owner of ALL economically viable use of
the property
What is a “public purpose”?
- Very broadly interpreted; Anything rationally related to a
legitimate government purpose
What is “just compensation”?
- Fair Market Value; whatever the owner could sell that property for
on the open market (NOT what it is worth to the owner)
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Zoning Laws
 Done by local authorities with the permission of the state governments
 Purpose is to keep apart lands whose uses are harmful to each other
Typical zoning structure:
“Zones”
1) low density residential,
2) high density residential,
3) low density commercial,
4) high density commercial,
5) low density industrial and
6) high density industrial
Others may include: farm, landfill, ports etc.
Cumulative zoning: Any use can be made can be made of property as long
as it is zoned for that use or a “lower” use.
Mutually Exclusive Zoning: A use can only be made can be made of
property if it is zoned for that use
- A zoning law that prohibits an existing usage can be a “taking.”
- “Forced phase outs” are generally not considered to be takings”
Variances
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